JetBlue Airways Corporation (NASDAQ:JBLU) reported better-than-expected second-quarter results on Tuesday, beating analyst forecasts for both earnings and revenue while unveiling a long-term earnings target under its JetForward transformation strategy.
Shares rose 2.5% in pre-market trading following the announcement.
The airline posted an adjusted loss of $0.66 per share, outperforming the analyst consensus estimate of a $0.70 per share loss.
Revenue increased 14.5% year over year to $2.70 billion, edging above the consensus forecast of $2.69 billion.
JetForward Strategy Drives Revenue Growth
JetBlue said revenue per available seat mile (RASM) increased 10.9% from a year earlier, supported by strong travel demand and commercial initiatives introduced through its JetForward turnaround programme.
The company also unveiled a new long-term earnings target, aiming to generate earnings per share of at least $1.00 in 2028.
Management expects the JetForward strategy to deliver approximately $1.2 billion of incremental annual EBIT by 2028.
“Our second quarter performance reflects the strength of our JetForward strategy and the focused execution of our crewmembers, as strong customer demand and our decisive actions enabled us to recover fuel costs more quickly than we anticipated,” said Joanna Geraghty, chief executive officer.
Strong Revenue Outlook Despite Higher Fuel Costs
For the third quarter of 2026, JetBlue expects revenue per available seat mile to grow between 12.5% and 16.5% compared with the prior year.
For the full year, the airline forecasts RASM growth of between 10.0% and 12.5%, while guiding for an adjusted operating margin of between negative 2.0% and negative 5.0%.
Transformation Programme Continues to Deliver
JetBlue’s cost per available seat mile excluding fuel increased 2.4% year over year during the second quarter, outperforming management’s guidance by 1.6 percentage points.
Fuel prices remained a significant headwind, with average fuel costs rising 76% from a year earlier to $4.23 per gallon.
The JetForward transformation programme has generated $470 million of cumulative incremental EBIT through June 2026 and remains on track to deliver between $850 million and $950 million of annual incremental EBIT by the end of 2027.
The airline also reported continued momentum in higher-margin businesses, with premium revenue per available seat mile increasing approximately 13% and loyalty programme revenue rising 13% year over year.
JetBlue Airways stock price
